The Nigerian Government is in third place on the list of nations producing oil at an expensive rate as the nation stands its production cost at $28.99.
The report is contained in a survey of 12 notable oil producing nations by the Wall Street Journal, WJS. The report places Nigeria behind the United Kingdom and Brazil whose production cost per barrel stands at $44.33 and $34.99 respectively.
The Wall Street Journal in its report said: “Nigeria is Africa’s largest oil producer, but frequent incidents of sabotage and oil theft have hindered the sector onshore. Many newer projects are focused offshore, where production is more secure but the capital investment required is higher.”
With respect to the capital investment by the oil producing nation, the report places the capital spending of Nigeria at 45.2 percent of barrel cost.
Further breaking down the nation’s cost of producing oil, the report shows that tax levied on oil producers in the nation is $4.11 on each barrel produced, while $13.10; $8.81 and $2.97 go into capital spending, production costs, as well as administration or transportation cost.
In profits, the report shows that the Nigerian government despite its huge production cost makes about $20 since oil prices reached $48 or above but the profit when compared to nations like Saudi Arabia increases to $40 or more at the same market price.
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